The Product: The Java-Log is a fireplace log made
primarily from recycled coffee grounds. Sprules, a mechanical
engineer, first learned of the high heat capacity of coffee grounds
while working on a heated cold weather suit for his former
employer. When coffeehouses became popular, he thought of
converting used coffee grounds into the Java-Log. Today, the
product, which retails for about $2.50 per log and burns hotter
than traditional firewood, is sold through Home Hardware, a major
Canadian hardware chain; Home Depot in Canada; grocery stores; and
a variety of smaller stores in Canada and the United States.
Product sales via the company's Web site (www.robustion.ca) are
also growing.

Startup: $38,000

Sales: More than $1 million in 2003

The Challenge: Turning an unknown niche product into a
national and international bestseller

Rod Sprules' java-log differentiates itself from traditional
firewood in a number of ways: It burns with brighter flames, emits
less carbon dioxide and is made from a waste product. And although
this engineer-turned-entrepreneur developed the environmentally
friendly product on his own, he needed help when it came to
generating interest among retailers and customers. Despite the
challenges, Sprules was able to turn his product into a
million-dollar success story.

Steps to Success1. Make some progress on your own. In 1997, Sprules
developed the idea, and experimental logs were tested in his
garage. "The procedure to make a log includes separating the
grounds, drying [and] mixing them, then extruding the finished
product," says Sprules. "It took 10 minutes to make a
log. By 1999, I had the equipment improved to the point where I
could make a log in 25 seconds. I started selling them at the local
farmers' market and to family and friends."

2. Choose a partner who complements your experience.
Though Sprules and his wife, Joanne Johnson, had done well on their
own, they jumped at the chance to take on a partner with marketing
experience. "In 2000, we tried licensing the product. We had
some offers, but they were not adequate," says Sprules.
"Through a friend of a friend, we met Marcel, who has years of
consumer marketing experience at Procter & Gamble and then at
PepsiCo. Marcel was the perfect complement to our skills."

Sbrollini explains the situation from his point of view:
"When I left PepsiCo., I was looking for a small to midsize
company where I could develop autonomy within the organization and
make a difference. I was with several other small ventures first
but found the ideal situation at Robustion Products."

3. Set up a test market to generate the financing you need to
expand. Investors will scrutinize you before investing, and
they like to see that you have the skills to expand. When the time
came for a full market test, which was funded by an additional
investment from family and friends, Sbrollini helped Sprules set up
a test market in Ottawa according to standards for consumer
products. "We sold the product in our test market to grocery
stores, hardware stores, a coffee shop, an art store and auto
supply stores," says Sprules. "We wanted to [sell] to a
full cross section of stores to understand how the product could be
sold."

"The results of the test were among the best I've ever
seen," Sbrollini adds. As a result, Sprules was able to land a
Canadian investor to expand sales for the 2001-02 winter
season.

4. Find a creative way to get market exposure. Though his
company was growing at a rate of 400 percent per year, Sprules
still didn't have the money needed for a big advertising
campaign. So Sprules and Sbrollini came up with a strategy.
"We approached a major chain of hardware stores in Ontario for
a one-season exclusive," says Sprules. "In return for the
exclusive, [they] gave us a big beginning order and had an
advertising campaign on the Java-Log, which included TV spots. The
deal turned the Java-Log into a national product."

5. Cash in on early success. During the 2002-03 season,
Sprules and Sbrollini rolled out the product throughout Canada to a
variety of stores, including Home Depot, Home Hardware, and other
hardware and grocery stores. Sbrollini used past success as a sales
tool: "We were able to use the success in the Ottawa test
market to create traction. Our success provided leverage, [which]
made the product sell."

A successful 2002-03 season helped Sprules and Sbrollini raise
additional money from private Canadian investors, which they needed
to approach the U.S. market for the 2003-04 season. The campaign
was a success: "We were just planning on selling in the
Northeast United States, but we received so much publicity that we
were selling across the entire Northeast and Midwest. By December
2003, we had sold most of our entire production for the
season."

Worldly Goods
Looking for a manufacturing source in Asia? Start with your
state's commerce department. It offers import and export
assistance, and can help set up a manufacturing plan. If this is
your first time working overseas, use a sourcing agent to find a
foreign manufacturer. The agent usually has an overseas office that
can get samples, oversee production, and ensure you get the product
you expect.

Lessons Learned1. Business savvy counts. It makes sense to partner with a
pro who makes great presentations to customers, gives investors
confidence, knows the best deal you are likely to get, and
understands how to close the deal. You want customers to deal with
you, but that can be a hard sell without a knowledgeable person
involved on your end. If you're ready to find potential
partners, try networking at entrepreneur clubs in your area or
contacting your local SBDC (www.sba.gov/sbdc). You can also place an ad for
a partner in the "businesses for sale" ads in your local
paper.

2. Investors look for experience. Customers look for
experience, but not nearly as much as investors do. Investors are
cautious about giving you money, and they will often back away from
an investment opportunity if you lack the requisite experience. As
a condition of the loan, expect investors to insist on the
long-term presence of someone with experience on your management
team.

3. Sometimes, you need to give to get. With an exclusive
deal, you lose sales opportunities-and possibly some profits-but
it's still a great deal for an inventor if the retailer runs a
big promotional program. So always consider giving exclusive or
favorable terms in return for positive placement or promotion from
the retailer. Without an incentive, retailers are not likely to
offer you any promotional activities.

4. Nothing sells like success. Retailers don't like
returns; they don't want to take up shelf space for products
that aren't moving, and they don't want to discount your
product to sell it. They're always looking for reasons a
product won't sell. Counter retailers' worries by showing
how well the product has sold in the past. If your product sold
well at the local level with a retailer and you want to sell it to
the corporate office, get a quote from a local manager about how
well the product did. Leverage every moment of success to increase
sales.

Picture This
Patent drawings are a big part of the expense of any patent.
Inventors trying to hold down costs should investigate How to Make Patent Drawings Yourself: Prepare
Formal Drawings Required by the U.S. Patent Office (Nolo
Press) by Jack Lo and David Pressman, patent agent and patent
attorney, respectively. In addition to covering all the rules and
general standards for what a patent drawing must contain, the book
explains how to do the drawings with just a pen and a ruler, or
with a computer or camera. The book requires some study time, and
following all the standards for reference numbers and the
arrangement of figures takes a lot of checking back and forth. But
it's a worthwhile resource for inventors willing to learn how
to do this costly step on their own.